European hot-rolled coil market participants have generally positive expectations about further price increases, Fastmarkets heard on Friday January 13.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €710.71 ($767.09) per tonne on Friday, up by €0.71 per tonne from €710.00 per tonne on Thursday.
The latest calculation was up by €41.54 per tonne week on week and by €75.00 per tonne month on month.
Buyers’ estimates of tradeable values were reported between €690 per tonne EXW and €730 per tonne EXW. Offers were reported at €700-760 per tonne EXW.
“Mills are pushing for higher prices due to improved purchasing and limited availability [of HRC], thus longer lead times,” a trading source said.
Some mills in the region were already offering HRC for April delivery. Several sources pointed out that most mills were firmly refusing to provide any discounts so far.
Market participant’s expectations were quite optimistic, even though buying activity has been slow in the week to January 13 because buyers have just come back to the market after year-end holidays and were evaluating the situation.
Sources suggested that higher offers would be accepted eventually, supported by output cuts, reduced stock levels at buyers and surging import offers.
Fastmarkets’ calculation of its daily steel hot-rolled coil index domestic, exw Italy was €696.63 per tonne on Friday, up by €0.38 per tonne from €696.25 per tonne on Thursday.
The latest calculation was up by €44.13 per tonne week on week and by €69.96 per tonne month on month.
Tradeable values were estimated by buyers at €680-700 per tonne EXW. But producers’ price ideas were generally higher than €700 per tonne EXW, according to sources.
Overseas HRC suppliers to Europe were also seeking higher prices, sources said, with offers from Southeast Asia, Egypt and India all heard at €670-700 per tonne CFR Italy for March-April shipment.
In early January, sales from Egypt to Italy were reported at €660-680 per tonne CFR.
An offer from a Japanese supplier was reported at $770 per tonne CFR Italy, although several sources suggested that the mill would adjust its offer to around $750 per tonne CFR next week.
A Turkish producer was said to be offering HRC at €740 per tonne CFR Italy, including an anti-dumping duty, but sources said that this was significantly above the price that European buyers would pay.
Published by: Julia Bolotova
